M - P

Question 1

margin

Answer 1

a measure of profit

Question 2

market allocation agreement

Answer 2

an agreement btw competitors dividing/ assigning a certain area or territory for sales

Question 3

market value

Answer 3

a property’s worth in terms of price agreed upon by a willing buyer and seller when neither is under any undue pressure and each is knowledgeable of market conditions at the time

Question 4

marketable title

Answer 4

title that is free from reasonable doubt and that a court would require purchaser to accept

Question 5

mechanic’s lien

Answer 5

a statuory lien available to persons supplying labor or materials to a construction of an improvement on land when they are not paid

Question 6

meeting of the minds

Answer 6

a condition that must exist to create a contract

Question 7

merger clause

Answer 7

a contract clause that means that whatever may have been promised or discussed in prior negotiations is of no importance; the parties are bound only by what is in the written contract

Question 8

metes and bounds

Answer 8

a system if land description by distances and directions

Question 9

mill

Answer 9

.1 of a cent

Question 10

misrepresentation

Answer 10

a) a false statement or omission of material fact

b) making an intentionally false statement to induce someone to contract

Question 11

moratorium

Answer 11

a delay in allowing development of property withing the municipality

Question 12

mortgage

Answer 12

a written document used to pledge a title to real property to secure payment of a promissory

Question 13

mortgage assumption

Answer 13

the transfer of mortgage obligations to the purchaser of the mortgaged property

Question 14

mortgage satisfaction

Answer 14

full payment of a mortgage loan

Question 15

multiple dwelling

Answer 15

a residence rented to three or more families

Question 16

Multiple Listing Service (MLS)

Answer 16

an organized method of sharing/pooling listing by member brokers

Question 17

mutual assent

Answer 17

The voluntary agreement of all parties to a contract as evidenced by an offer and acceptance

Question 18

mutual mistake

Answer 18

an error of material fact by both parties

Question 19

net lease

Answer 19

a lease in which the lessee pays a fixed amount of rent plus the cost of operating the property.

Question 20

net listing

Answer 20

a method of establishing the listing broker’s commission as all money above specified net amount to the seller; Illegal.

Question 21

nonconforming loan

Answer 21

a loan that does not follow the guidelines set forth by the Federal Reserve Bank

Question 22

nonconforming use

Answer 22

Utilization of land that does not conform to the use permitted by a zoning ordinance for the area; may be lawful or unlawful

Question 23

nonhomestead

Answer 23

all prop. not classified as homestead, i.e. commercial, industrial etc.

Question 24

nonhomogeneity

Answer 24

a physical characteristic of land describing it as a unique commodity

Question 25

nonpossessory

Answer 25

an individual does not occupy a prop.; easement implies a nonpossessory interest in land owned by another

Question 26

non-solicitation order

Answer 26

an order issued by the Sec. of State prohibiting licensees from soliciting listings in a certain area

Question 27

notice of lis pendes

Answer 27

a statement on the public record warning all persons that a title to real prop. is the subject of a lawsuit and any lien resulting from the suit will attach to the title held by a purchaser from the defendant

Question 28

obsolescence

Answer 28

Loss in property value caused by economic/ functional facts

Question 29

open listing

Answer 29

listing given to one or more brokers, no commission if seller sells first

Question 30

open mortgage

Answer 30

a mortgage that does not impose a prepayment penalty

Question 31

open-ended mortgage

Answer 31

a mortgage that may be refinanced without rewritting the mortgage

Question 32

operating budget

Answer 32

an annual budget that includes only the items of income and expenses expected for week-to-week operation

Question 33

operating statement

Answer 33

a report of rental property receipts and disbursements, resulting in net income

Question 34

operation of law

Answer 34

the manner in which rights and liabilities of parties may be changed by application of law without the act or cooperation of other parties

Question 35

option to renew

Answer 35

a provision setting forth the method and terms for renewing the lease

Question 36

oral will

Answer 36

a will usually restricted to the granting of personal property because it conflicts with the Statute of Frauds, which states that the conveyance of real property must be in writing

Question 37

origination fee

Answer 37

a service fee charged by a lending institution for making a mortgage loan

Question 38

overimprovement

Answer 38

improvement to land that results in land not being able to obtain its highest and best use

Question 39

packaged mortgage

Answer 39

a mortgage which personal prop. as well as real prop. are pledged to secure payment of the note

Question 40

packaged policy

Answer 40

Insurance coverage for prop. damage and liability loss in one premium

Question 41

parcel

Answer 41

a specific portion of land such as a lot

Question 42

parol evidence

Answer 42

Oral testimony not sufficient to create a contract involving that transfer of title to real property

Question 43

party wall

Answer 43

a common wall used by two adjoining structures

Question 44

passive activity

Answer 44

a trade/business in which taxpayer invest but does not materially participate

Question 45

payment cap

Answer 45

monthly payment remains the same and money for the higher interest is added to the principle.

Question 46

PCBs

Answer 46

liquid organic compound found in groundwater and soil

Question 47

pro forma schedule

Answer 47

an operating statement that reflects a prop.'s income and expenses based on the investor's expectations about the real estate market

Question 48

proration

Answer 48

division of a certain settlement cost between B & S

Question 49

prudent avoidance policy

Answer 49

NY advises people to avoid exposure to EMF fields whenever possible

Question 50

purchase money mortgage

Answer 50

Seller finances sales